04.07.2018 (New Straits Times Online) - NEW YORK: Malaysia’s palm oil exports stand to benefit from rising imports of edible oils by the United States (US), including palm oil, thanks to the country’s continued economic growth trajectory in the current year.

This trend was also obvious at the just-concluded three-day New York Fancy Food Show (NYFFS) 2018 which reflected robust economic growth and, with it, strong consumer demand, all of which portends well for Malaysia’s palm oil exports.

A number of vegetable oil supplying nations – from Greece and Italy through Turkey to Morocco and Tunisia to Indonesia – had set up national pavilions in which they showcased not only the edible oils, but also a wide range of processed food and agricultural products.

The Malaysian Palm Oil Board (MPOB) which maintains an office in Washington DC, also participated in the NYFFS 2018, together with palm oil agencies from other countries which were optimistic about future growth due to growing demand in segments of the food industry that use it in their products.

Fairus Bidzir, MPOB’s regional manager, described exhibitions as an important tool to reach out to stakeholders.

He also went around the huge halls of the NYFFS that accommodate the thousands of exhibitors and tried to identify suitable manufacturing segments potentially using palm oil.

“This show is a good platform to connect with the users of palm oil. I have been talking to producers of a variety of products that use rice bran, for example. I explained to them that while rice bran is good, it is more expensive and its supply is limited.

“I explain to them that palm oil can be used in the production of chips as it is not only cheaper, but also available over the long-term, besides having a longer shelf life,” Fairus told Bernama.

He also approached a beverage company which was looking for an alternative to colouring agents.

“I pointed out that natural carotene, derived from palm oil, is a good alternative. Then, in the production of cosmetics, we can also offer palm oil which is a source of anti-oxidant properties,” he said.

While coconut oil is making an advancement in the US market, thanks to some reports about its health benefits, Fairus seemed unperturbed by this development.

“The production and supply of coconut oil is limited. Besides, coconuts is not grown everywhere, while oil palm can be cultivated on just one-tenth of land compared to the area used in the production of other sources of edible oil,” he said.

Explaining MPOB’s participation at the NYFFS, he said the agency would be educating and informing a specialised audience and update them on related issues such as sustainable and environmental-friendly production of palm oil.

For instance, Malaysia’s palm oil is produced without creating or causing deforestation issues as the plantations were established in former rubber estates.

Meantime, MPOB’s networking here helps generate future business and create a positive image for Malaysian palm oil. Indonesia and Malaysia are the world’s top two palm-oil exporters.

MPOB too serves as a neutral conduit which oversees the industry and trade, and helps prevent any issues arising between Malaysian suppliers and their foreign customers.

“We ensure that Malaysian palm-oil supplying companies comply with regulations. Malaysian companies have to comply with the mandatory sustainable standards for the entire palm-oil industry. Our emphasis is on environmental sustenance,” Fairus said.

Malaysia’s palm-oil exports, amounted to roughly over 19 million tonnes, while revenue derived from exports in 2017 touched nearly RM 77.85 billion, up from RM 67.92 billion in the previous year.

The US is the world’s eighth largest buyer of Malaysian palm oil and palm-oil based products.

India is the world’s biggest buyer of Malaysian palm oil, followed by the European Union, China, Pakistan, the Philippines, Turkey and Vietnam.